Industry news

  • 28 Oct 2010 12:00 AM | Anonymous

    Two new appointments to BT’s public sector team will strengthen the knowledge base behind the end-to-end ICT services it delivers to government departments and agencies across Northern Ireland. The positions have been created to build on existing customer and partner relationships as well as pave the way for cost transformation projects aligned to emerging public sector requirements.

    The BT public sector division has been growing steadily and serves many of its key customers across the NI Civil Service, local government, education, criminal justice and health. Projects include the deployment of Account NI, a shared services centre for the Department of Finance and Personnel, a managed ICT infrastructure for the Northern Ireland Housing Executive, a managed network contract in the education sector and a PFI for Land and Property Services.

    “The breadth and scope of our skills is something we continually look to build. Having great new people in our team will help us continue to create strong public sector partnerships where we can bring all our expertise to bear on transformational projects that increase efficiency and save money,” said Peter Russell, Head of Public Sector, BT.

  • 28 Oct 2010 12:00 AM | Anonymous

    Proposals for twenty-four local enterprise partnerships were given the green light by Government today, in a landmark move that will see local business and civic leaders working together to drive sustainable economic growth and create new jobs in their communities.

    Ministers announced the first wave of successful partnerships today as part of a new plan for local economic growth, which sets out the Government’s role in empowering locally driven growth, encouraging business investment and promoting economic development.

    Ministers also declared the £1.4bn Regional Growth Fund open for business.

    The fund will support the creation of private sector jobs and will particularly support communities currently dependent on the public sector, helping them make the transition to private sector led growth and prosperity.

    The announcements form part of a White Paper on Local Growth published today, which sets out the Government’s new approach to rebalance the economy and drive sustainable growth by focusing on three key themes:

    · Shifting power to local communities and businesses - by establishing dynamic local enterprise partnerships of local business and civic leaders, operating within an area that makes economic sense, which can provide the vision, knowledge and strategic leadership to set local priorities and empower communities to fulfil their potential.

    · Increasing confidence to invest – by creating the right conditions for growth through a consistent and efficient framework for investment, an effective planning framework and new incentives to make sure local communities benefit from development.

    ·Focused investment – by tackling barriers to growth that the market will not address itself and supporting investment that will have a long term impact on growth.

    Business Secretary, Vince Cable said:

    “I was delighted that so many of the proposals for local enterprise partnerships showed real imagination and initiative and a genuine desire to drive local economic growth. I am pleased to announce that we are asking 24 of these partnerships to set up their boards and get to work.

    “The knowledge and expertise of the private sector, local authorities and their local communities will be crucial as we work to create a better environment for business and ensure that everyone has access to the opportunities that growth brings.

    “The measures set out in today’s White Paper demonstrate the Coalition’s ambition to create a fairer and more balanced economy – one that is driven by private sector growth with business opportunities spread more evenly across the country and between industries.”

  • 28 Oct 2010 12:00 AM | Anonymous

    A group of the largest businesses across the world have joined forces to provide a set of requirements for the future of cloud computing.

    The Open Data Centre Alliance has been formed by 70 business members with a combined annual IT spend of £31.6bn. The alliance includes members from BMW, Shell, UBS and Deutsche Bank who will aim to set hardware and software requirements for cloud computing to tackle organisations’ challenges such as security, automation and interoperability.

    Mario Mueller, steering committee member and vice-president of IT infrastructure for BMW, said, "For the first time, an independent consortium of global IT managers will work together to define requirements of datacentre and cloud environments, for today and tomorrow."

    "Members are committed to the usage model road-map to guide datacentre purchasing decisions and for planning future datacentre deployments," added Mueller.

    Intel is the technical advisor for the alliance and unveiled plans at Cern's Globe for Science and Innovation in Geneva, to make cloud computing more interoperable as part of its Cloud 2015 initiative to meet alliance requirements.

    Boyd Davis, vice-president of Intel's architecture group, said, "In the next five years, the internet will gain five billion new users, which will choke existing infrastructure, while closed proprietary architecture will stifle innovation. There is demand for infrastructure that is open and interoperable."

  • 28 Oct 2010 12:00 AM | Anonymous

    In an uncertain economy, our instinct is to make the best with what we have, rather than splash out on new products. Car owners are an obvious example. They eke out another thirty thousand miles from their old vehicle, patching her up at the garage every time she develops another rattle. The fact that a new car would save on fuel, tax and running costs – not to mention stress - is eclipsed by this determination to battle on grimly as before.

    For local government departments likewise, the temptation is strong to do the best they can within the status quo, rather than searching for a better alternative. This is perhaps understandable after all, the public sector is facing severe cuts in funding, but the demands for services will remain as they are. Indeed, they may well increase as investment from the private sector shrinks. Meanwhile, Westminster appears to have turned its back on local government, shelving long-awaited reform of the finance systems.

    While councils may see their core responsibilities as to empty the bins and bury the dead, with everything else optional; citizens’ expectations in times of financial constraint are likely to be much more wide ranging. Recession and redundancy are guaranteed to drive folks back to the libraries, into the parks and leisure facilities, and into the offices of social services for support. The local community, resentful of perceived bureaucratic inefficiency, will not tolerate a hike in council tax to pay for any financial shortfall. In short, town hall chiefs are being asked to spin straw into gold.

    In this cost-saving environment, IT services can appear as a soft target. As long as the support staff keep the lights on, says the jittery finance director, then we’ll get by just fine, no? We cannot risk making an expensive mistake, so it’s far safer to use sticking-plaster rather than wield the big broom, right?

    This reaction is hardly a new or surprising one. Restrictions on capital expenditure, costly procurement exercises and short term cost considerations have too often got in the way of long-term efficiency and quality of service benefits.

    But, just like the stubborn car owner who patches up his wheezing gas-guzzler, those authorities that carry on regardless are living in a false economy. Investment in new IT solutions will quickly save money and provide better services: the dream scenario for all electable councillors.

    Desktop virtualisation is the key to this alchemy. Instead of running hundreds, or thousands of costly desktop PCs across a number of different locations, departments and operating systems, a cloud-based service can dramatically improve efficiency whilst saving money on power and maintenance. Virtualisation encourages hot-desking and flexible working, as employees can work from any client device on the system, so reaping further financial savings.

    According to technology analysts Gartner, organisations can save between 40 per cent and 70 per cent on overall operating costs per user per month by implementing an application or desktop virtualisation solution. A separate study by the Butler Group found that organisations can save half their energy costs by switching to a virtual desktop, which also represents a substantial reduction in an organisation’s carbon footprint.

    Aside from the financial benefits, the efficiency gains are immediately reflected in the day to day running of the system. Authorities are increasingly expected to “join up” departments - education, health and social services - and coordinate their response to changing workloads, funding and priorities. Central government’s decision to change roles and responsibilities between departments will inevitably increase the need for flexible, secure access to systems from new users, locations and organisations, with very little budget allocated to transitional services or support. Virtualising the desktop allows any system or data to be delivered without the need to visit or install software onto the user’s PC.

    Surrey County Council, for example, is profiting from a new desktop strategy for 8,000 users, ten per cent of whom are mobile. The Council recognised that its desktop strategy was becoming unwieldy and out-of-date and it needed to ensure that application upgrade and management costs didn’t escalate; it also needed a greater degree of flexibility. A new Citrix-based installation has allowed County Hall to replace more than half of its ‘fat’ 6,000 desktops across 300 sites with ‘thin’ hot-desk terminals. Centralising all the Council’s servers and file storage in one place has improved accessibility and productivity levels and met Surrey’s need for users to be more mobile, improve performance and to reduce power requirements and costs.

    As well as this increased horizontal sharing, where information and systems are shared between different agencies, authorities are increasingly demanding vertical shared services, delivering a wide variety of different systems to similar organisations in different locations. These shared services can use desktop virtualisation to centralise delivery into a shared environment, where pooled budgets and resources can delivery economies of scale. It is often said that two can live nearly as cheaply as one (particularly if you cut out all the discretionary spending!) and this is equally true of running IT delivery services.

    Some costs are unique and based on the number of users, but many can be shared resulting in real savings. For example, The Homes and Communities Agency (HCA), the national housing and regeneration agency for England, provides staff with access to core business applications via a Citrix XenApp environment. One thousand users have been federalised by the solution. The flexibility and scalability provided by the Citrix environment is central to the Agency’s ICT Strategy.

    Critically though, local government will seek to make savings wherever it can that do not directly affect jobs or impact adversely on service delivery. That means reducing accommodation and travel costs, and cutting spend on new equipment and maintenance wherever it’s safe and sensible to do so. Virtualised desktops can play their part here too, allowing staff to work from home, or any office with a client device, extending the lifespan of existing equipment and moving to a “swap on fail” for client devices. Taken together these measures can significantly reduce accommodation footprint through hot-desking, reduce maintenance and support costs and make staff more productive.

    Solihull Community Housing Association, in collaboration with Solihull Council, deployed a Citrix XenDesktop Virtual Desktop Infrastructure (VDI) solution to support independent working for its duty managers. Located at specific sites across the borough, the duty managers previously logged into dedicated PCs at their respective location. Now, they can work from any site within the borough. Introducing a far greater degree of flexibility, the system allows registered users to securely log into their virtualised desktop from any location. In a stroke, the system increased overall workforce efficiency by removing the need for a duty manager to be present at every location all of the time.

    These technology solutions may not be wired to spin straw into gold, but they can deliver effective and efficient IT services whilst reducing costs. Town hall chiefs who realise calculated investment can save money may find the time is right to trade in the spluttering rust bucket for a vehicle that will drive performance and savings for many years to come.

    Centralis is a leading independent IT consultancy, specialising in delivering applications securely to their point of use. Centralis’ mission is to help customers reduce cost and improve business agility through innovative, award-winning solutions backed by top-level partnership with industry leading vendors, including Citrix, Microsoft and VMware Centralis local government customers include Surrey County Council, Bracknell Forest Borough Council, Leeds City Council, Solihull Metropolitan Council, Horsham District Council, and Fife Council.www.centralis.co.uk

  • 28 Oct 2010 12:00 AM | Anonymous

    It’s no secret that financial services companies – banks, insurers, asset managers and the like – have had a challenging time over the past couple of years. But with growth now the focus of the

    industry’s attention, new products will be needed. The debt-based culture of the last ten years is behind us and people want ways to accumulate wealth and minimize their tax liabilities. For financial services providers, getting the right products to market quickly is key to taking advantage of this changing market. And if you want to launch new products effectively, outsourcing is one option to consider.

    Getting new, innovative products to the market quickly can be the difference between being a leader or laggard in the financial services market. The pressure is on to create and bring new and different types of product to the market. In a world where consumer’s needs are changing, financial services providers, (and their outsourcers and tech providers) find themselves having to revolutionise the way in which they introduce, and market their new offerings into the marketplace.

    Although this has been difficult in the past, outsourcing now gives product managers and actuaries a new option to build their product portfolio, reducing the cost and time it takes for new product development. This also helps bridge the gap between product design and implementation, helping to get new products out faster.

    So once you’ve built it, how do you sell it? New marketing strategies can encourage people to think differently about new versions of well known (older) products and could make the difference between a highly successful launch and a complete flop. For instance, now that consumers carry thousands of pounds worth of electronic equipment on them including IPods, laptops and mobile phones, protection products could be sold as ‘preserve your lifestyle’ rather than ‘preserve your life’.

    Now, during the ‘post-crunch’ period, the weight of competition in the marketplace only heightens the pressure to get products available to consumers in the blink of an eye. Speed to market has been the deal-breaker in the ascent to the top of the market for companies in the past, most notably being Standard Life’s rise to dominance in the SIPP market a few years ago. Understandably, others such as Santander are now attempting to re-create this success through all of the means mentioned above.

    The big question is, “how do providers speed up the process by which products are brought to market?” The answer is allowing skilled, strategically managed teams to handle the product development from end-to-end so that these products are created and launched efficiently - better known as outsourcing.

    Outsourcing allows the more sophisticated types of product development strategies can grow and become more comprehensive to deliver improvements in product quality as well as how quickly it can be delivered to the market. A properly thought-out strategy for product development and product-to-market can make a real difference to customer retention and treating customers fairly.

  • 27 Oct 2010 12:00 AM | Anonymous

    Jane Williams, Head of Talent Management and Learning at Siemens IT Solutions and Services discusses the opening up of opportunities and career progression for individuals part of IT or business process outsourcing agreements.

    The business of managing and motivating talent in any organisation is an important element to get the best out of individuals and gain a high performance culture. Within the outsourcing arena, many thousands of employees can transfer into an organisation upon signature of a contract. This influx presents challenges of retention, development and motivation of the individual at a time of much change, yet at the same time it is essential to gain employee commitment and engagement for the good of the new contractual relationship.

    A focus on people management as a core element of the new outsourcing agreement is crucial to hit the ground running. Professional outsourcing suppliers offer dedicated HR and talent management teams to support effective people transfer and cultural integration of new transferring employees. This is far more than a focus on pay and benefits, but a dedicated approach to knowledge development and career progression through training and development initiatives and more personally tailored coaching and mentoring schemes.

    Retaining the people at the heart of organisations

    The spectrum of people transferring over to an outsourcing supplier from an originating organisation such as broadcaster, bank or local council can range from back office administration roles through to high level management positions. Each person has an individual need that has to be supported and enhanced. Siemens IT Solutions and Services boasts a ‘practice what it preaches’ philosophy and is proud that 55% of its employees have TUPE transferred from another organisation. Indeed the Managing Director himself was formally part of TUPE transfer.

    Encouraging the sharing of knowledge and experience between peers

    Where outsourcing agreements see large numbers of people transferring over to an outsourcing supplier but remain on an original site, for example a call or data centre, the challenge of talent management is further exaggerated. Geographical spread and cultures are diverse so positive and mobile talent management initiatives need to be proactively rolled out. This includes internal communication programmes, seminar session, team briefs and social events.

    The moment people transfer into Siemens, they are part of a much large community of local, national and sometimes global peers across diverse industry sectors. The alignment of transferring employees to skills practices boosts the sharing of best practice, championing of knowledge and development of careers. For example, a desktop manager within a finance company has the potential to cross pollinate ideas and experiences with a colleague in a public sector organisation. At the same time, career progression is enhanced with greater opportunities available for upwards or horizontal migration.

    A positive example of talent transfer in business process outsourcing

    National Savings and Investments (NS&I) and Siemens IT Solutions and Services are an example of partnership between government and the private sector, which has been very successful, demonstrated in a long term contract.

    NS&I is one of the most deeply-rooted and historically significant financial institutions in the country. It started life as the Post Office Savings Bank and was originally established to encourage people to save by giving them an absolutely secure, easily accessible home for their money, backed by the credibility of the UK Government. In more recent times its strategic objective has been to provide cost effective funding for the Treasury. It does this by making funds available from the retail market at a lower cost than the Treasury could achieve by borrowing from the wholesale market, resulting in a saving for the UK taxpayer.

    Back in the 1990s, NS&I needed to take radical steps to get the business on track, which included finding a partner who could deliver an operational business and drive a change programme efficiently and effectively. This would leave the NS&I management team free to concentrate on its core business, the business of competing in a financial services marketplace.

    The entire NS&I operations department was outsourced, with more than 4100 staff joining Siemens under TUPE regulations. Once this transfer had taken place, around 130 staff remained keeping responsibility for executive leadership, strategy, product design and pricing, marketing, relationship and contract management and other core management tasks. The Siemens account director is an integral, permanent member of the NS&I executive management board - this means that conscious efforts are made on both sides to set strategy, develop action plans and resolve issues together, as partners rather than through the normal client/supplier relationship. This shared vision has proved to be the key to long term success.

    Since 1999, funds under management at NS&I have increased significantly, employee productivity has improved by over 400% and customer response times were slashed from 11 to three days. A shared partner vision has developed the relationship into much more than an outsourcing deal and the key to success has been attributed to the management of people and a stronger customer focus, all underpinned by technology change.

    Talent management as the hinge for operational success

    The NS&I case example highlights that with the right processes, new innovations, leadership and management of people, productivity gains are assured. Other operational benefits that can be achieved by looking after your ‘people power’ are improved margins, extended market share and even survival in a competitive environment.

    Talent management is certainly not the ‘soft’ side of outsourcing, but should be seen as one of the hinges to operational and individual employee success.

    www.siemens.co.uk/it-solutions

    Siemens IT Solutions and Services is a proven provider of IT and business process outsourcing services to the public sector. Clients include National Savings & Investments (NS&I) VOSA, the UKBA, the Office for National Statistics and Welsh Assembly Government.

  • 27 Oct 2010 12:00 AM | Anonymous

    Talent Management

    "The best minute you spend is the one you invest in people." Ken Blanchard

    Time and time again through surveys, questionnaires and online response forums, the response to what makes a positive outsourcing agreement always results in the same answer. The people.

    Organisations are realising that the key to effective business partnerships is very often the individual relationships that exist and the amount of time that is put into managing them.

    Every week news stories highlight successful outsourcing partnerships and lessons regarding talent management can be learnt from each of them. 3M extending its IT outsourcing relationship with Cognizant is one of them, along with other manufacturers who have recently renewed or extended their outsourcing deals, such as General Motors with HP, Ford with CSC and Dell with the US Department of Homeland Security this year.

    Ferenc Szelenyi, Vice President EMEA Public Sector Services, Dell, said: “To make talent management work, it needs to be comprehensive, throughout an organisation. Therefore, the starting point must be to ensure the organisation has the right technology and processes in place, and in one place. This will mean the HR team, together with the management team, can focus on managing the company's talent, rather than on managing each separate transactional process.”

    The NOA Talent Management in Outsourcing seminar was held with the aim of sharing best practice, incorporating views from the industry and highlighting how to gain a competitive edge through human development opportunities.

    Yvonne Williams, Representative for Individual Professional Development, NOA, opened the seminar and said: “Development and skills mapping are not always laid out clearly within an organisation and there can often be overlapping or duplication. Understanding where problems can lie in the outsourcing process and devising solutions using the right people for the job is crucial to its success.”

    Training and professional development are key in outsourcing. Trained and skilled staff need to be retained and development plans need to be frequently looked at within the context of the bigger picture and changes in the industry. These changes can include the increase in vertical expertise, emphasis on relationship management with offshore and nearshore providers as well as the implementation of evolving technology in the industry.

    Logica was on hand at the seminar to present a case study of how professional training can be used to best effect. Logica employs 39,000 people across 26 countries and has developed numerous successful global “You Develop, We Grow” activities focusing on talent management and professional training.

    Helen Sussex, UK Skills Development and Training Manager, Logica, said: “Specific people skills are the ones which are mostly missing from outsourcing partnerships. Outsourcing should not be seen as a simple delivery of services. Client management and investment in staff is essential. The benefits of a comprehensive talent and development programmes are numerous. The value based approach is emerging increasingly in outsourcing and suppliers are no longer simply required to fulfil their SLA.”

    As the outsourcing industry is maturing, it is important that it is recognised as a profession in its own right. The UK is very often seen as an outsourcing centre of excellence, yet it often fails in promoting its own professionalism.

    The NOA is embracing this challenge through qualifications, development workshops, various events and a fellowship. These all aim to further establish the outsourcing sector as a highly regarded profession by promoting the industry and producing white papers which can be distributed to the wider outsourcing community.

    The NOA Pathway is a set of accredited qualifications designed to support the development of competency and provide professional recognition in the outsourcing industry. The programmes are flexible to allow the participants to shape the programme around their own agenda and are framework based but not prescriptive.

    Chris Halward, Programmes Director, NOA, said: “To develop outsourcing as a profession, it seems sensible that a talent programme should reflect that outsourcing is part of everyday business now. Talented individuals who do not understand outsourcing will struggle unless they realise the process.

    “This process can be demonstrated through knowledge of the NOA Lifecycle which provides a recognised flexible framework to guide companies and individuals through the outsourcing process.”

    NOA also announced it will be awarding post nominals for the Diploma and Professional Certificate. The NOA believe that post nominals will enable individuals who have invested in their professional development to be more easily recognised and may go some way to solve the issue of self-promotion in the industry.

    So while the outsourcing industry can only go from strength to strength with the increasing flexibility of models, cost effective use of new technology and prospective surge in public sector contracts - the amount of growth and recognition will ultimately depend on the management, recognition and development of one area. The people.

  • 27 Oct 2010 12:00 AM | Anonymous

    Microsoft’s departing software chief has urged the company to move on from its base of Windows and Office and look to global web devices.

    Ray Ozzie made his mark with his ‘Internet Services Disruption’ memo which is seen by many as Microsoft’s manifesto for internet based cloud computing.

    Ozzie has made the call for simplicity within Microsoft’s applications as many new smartphones are released in November.

    Ozzie said: "Let's mark this 5-year milestone by once again fearlessly embracing that which is technologically inevitable.”

    "The next five years will bring about yet another inflection point -- a transformation that will once again yield unprecedented opportunities for our company and our industry catalyzed by the huge and inevitable shift in apps and infrastructure that's truly now just begun."

  • 27 Oct 2010 12:00 AM | Anonymous

    Indian Outsourcer HCL has announced that it will target the UK public sector very “aggressively”.

    Vineet Nayar, CEO of HCL, said "public sector outsourcing contracts are inefficient. They have to be measured against global benchmarks and open to more people... You cannot take from citizens and give to companies that are hugely inefficient."

    The government is currently cutting the amount if spends with some of its biggest suppliers which include Atos Origin, Accenture and Capgemini.

    Nayer insisted the cost-cutting doesn't have to come at the expense of innovation: "It's not about cost arbitrage, it's not about moving jobs from the UK to India - it's about innovation... and innovation will come from the use of technology," he said.

    Despite the public sector cost-cutting agenda, Nayar said any UK government work undertaken by HCL could be carried out onshore, rather than in lower-cost offshore locations such as India.

    Nayer said "We will be happy to deliver 100 per cent of services from the UK.”

  • 27 Oct 2010 12:00 AM | Anonymous

    George Osborne has said that GDP figures show recovery is steady

    George Osborne has said that the UK economic performance figures show the recovery is "steady" which is better than expected at this time.

    Osborne said the "lion's share" of the recovery had come from the private sector.

    The Office for National Statistics (ONS) suggests the economy grew at 0.8% between July and September - twice the rate expected by many analysts.

    The chancellor said this would improve confidence, with Treasury sources adding it showed the risk of a "double-dip" recession was being overplayed.

    But Labour said the speed of spending cuts could damage the recovery.

    The latest gross domestic product (GDP) figure follows 1.2% growth in the second quarter of the year, and is double the 0.4% expected by analysts. But the data is only a first estimate, and may be revised.

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